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The art of customer retention: What factors influence customer loyalty?

Finding a sales lead, negotiations, due diligence and closing a deal – all this process isn’t a new thing for sales professionals and those in client servicing. It takes around 4 to 6 months to seal a deal. Whether you’re approaching an enterprise or a retail client, closing a conversation always causes stress. We always hear that bringing new business sales is tougher than retaining an existing client.

According to studies, it’s up to 7 times more costly to attract a new customer than it is to retain an existing customer. So, what are the factors that influence customer loyalty:

Great products:

A great product which you keep innovating with new features will always help to increase customer loyalty. For example: iPhone Whenever Apple rolls out a new version of iPhone, it comes with a slew of new features – both technological and software. It basically focuses on areas that drives value and allows loyal customers to renew, upgrade and never leave. Satisfied customers become a campaigner for your brand, which in turn advocates your business.

Customer Service:

Did you know that 68% of customers leave because they are unhappy with the service they receive. (source: https://www.dmn3.com/dmn3-blog/5-critical-factors-that-drive-customer-retention-strategies). That’s why for any business, proactive customer service is important as it is a step ahead in building customer loyalty. It’s a great way to delight them.

Rewards:

Want to encourage repeat business? Rewarding customer for their loyalty will make them more likely to engage with your brand. A loyal customer will always be happy to receive rewards from their favourite merchants. The rewards can be given via social, an emailed coupon or a mobile app.

Online Content:

Social media is a great way to keep existing and potential customers updated on a regular basis. This allows customers to explore new facets of your brand, products/services, values or any other offers. Promoting them on social media is the key. This keeps existing customers interested in your products.

Personalized emails:

Though social media has taken over the traditional marketing thing, but email marketing is still considered as a great way to stay in touch with existing customers. Sending regular emails helps them to reconnect with your business.

A trusted relationship with your customers ensures that your brand taps new prospects recommended by your current clients, hence opening increasing the chances of growing customer base and capturing sales.